Factor income

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Factor Income is income derived from selling the services of factors of production. In the case of labour, this means wages, plus the part of the incomes of the self-employed which is a reward for their own labour. Income from land is rents, including part of the incomes of the self-employed, and part of the imputed incomes of owner-occupiers of houses. Incomes from capital and entrepreneurship are received as dividends, interest, the retained profits of companies and the part of the incomes of the self-employed which is a return on their own capital and entrepreneurship.